As expected, Mazda announced early this morning the construction of an assembly plant in the Mexican city of Guanajuato as a joint venture with Brazilian firm SumiTomo Corporation, boosting business for both companies in Central and South America.
The Mexican installations producing the Mazda2 and 3s will become the hub for compact cars destined for that part of the world, assembling both vehicles and engines.
Mazda and SumiTomo plan on starting production at the end of the 2013 fiscal year (April 2013 to March 2014) and building 140,000 vehicles per year.
The decision may prove quite profitable for the Japanese automaker, as Brazil is currently the fourth largest automobile market in the world behind China, the U.S. and Japan.
The Brazilian market is in fact booming and considered the latest El Dorado of the auto industry. Demand for new vehicles has doubled between 2005 and 2010, reaching about 3.5 million units annually.
The recent success story of Mazda in Mexico is no doubt behind the company’s decision to break into Central and South America.
“Since Mazda entered the Mexican market in October 2005, our sales results have steadily improved, and in 2010 we set a new record for both sales volume and market share,” said Takashi Yamanouchi, president and CEO of Mazda.
“Building on this success, and by leveraging SumiTomo Corporation's extensive experience and knowledge of emerging markets, we will continue to strengthen our business in Mexico and throughout Central and South America, including the rapidly growing Brazilian market.”
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| Photo: Mazda |
The Mexican installations producing the Mazda2 and 3s will become the hub for compact cars destined for that part of the world, assembling both vehicles and engines.
Mazda and SumiTomo plan on starting production at the end of the 2013 fiscal year (April 2013 to March 2014) and building 140,000 vehicles per year.
The decision may prove quite profitable for the Japanese automaker, as Brazil is currently the fourth largest automobile market in the world behind China, the U.S. and Japan.
The Brazilian market is in fact booming and considered the latest El Dorado of the auto industry. Demand for new vehicles has doubled between 2005 and 2010, reaching about 3.5 million units annually.
The recent success story of Mazda in Mexico is no doubt behind the company’s decision to break into Central and South America.
“Since Mazda entered the Mexican market in October 2005, our sales results have steadily improved, and in 2010 we set a new record for both sales volume and market share,” said Takashi Yamanouchi, president and CEO of Mazda.
“Building on this success, and by leveraging SumiTomo Corporation's extensive experience and knowledge of emerging markets, we will continue to strengthen our business in Mexico and throughout Central and South America, including the rapidly growing Brazilian market.”